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Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Regular Deluxe 100,000 Quantity 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Cost Regular Deluxe Activity Name Activity Driver $1,750,000 Number of setups 300 200 Setups 300.000 40,000,000 100,000 Machine hours Machining 6,000,000 100,000 50,000 Engineering hours Engineering 300.000 400,000 100.000 Packing orders Packing Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups per setup Machining per machine hour Engineering per engineering hour per packing order Packing 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar Deluxe per unit per unit Regular
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